• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • Expats

GCC to suffer 10% drop in population under expat exodus

GCC to suffer 10% drop in population under expat exodus
  • Pedro Gonçalves
  • @PeterHSG
  • 25 September 2020
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Population in some of the six-nation Gulf Cooperation Council (GCC) countries may decrease by as much as 10% as the impact of the covid-19 pandemic forces their mostly foreign workers to leave the oil-rich nations.

"The dependence of the GCC on expat workers and large swathes of job losses as the lockdown bites into key sectors may result in significant falls in population, which could have longer-lasting implications," Bloomberg said, quoting Oxford Economics, a leader in global forecasting and quantitative analysis.

Related articles

  • Comment: Could Saudi austerity hit foreign investment?
  • Expat exodus in Gulf states could continue into 2023: S&P report
  • Now Qatar vows to waive visas 'for 80 nationalities': report
  • More than 1.1m expats arrested in Saudi Arabia since November

The Oxford Economics report also said the GCC is in recession as lockdowns to curb the spread of coronavirus and the ramifications of low oil prices hit the non-oil economies. Consequently, employment across the GCC could drop by around 13%, with peak-to-trough job losses of some 900,000 in the UAE, and 1.7 million in Saudi Arabia.

The expatriate exodus is expected to be larger than after the 2008-2009 financial crisis"

Reliance on expat workers in vulnerable sectors means the burden of job losses will fall on the ex-pat population, it mentioned. 

Combined with visas depending on employment and lack of a social safety net, an expat exodus is likely to happen as the travel restrictions are eased. This could result in the population decreasing by between 4% (in Saudi Arabia and Oman) and around 10% (in the UAE and Qatar).

While an expat exodus may mean that the GCC "exports" some of the impacts of the recession, it will also have some negative effect on key sectors, such as possible labour shortages as the hospitality sector recovers, an additional drag on property markets, and probable price pressures in certain quarters, the report remarked.

In a May 2020 report by Reuters, it said 35 million foreigners form the Gulf's economic backbone. 

"The expatriate exodus is expected to be larger than after the 2008-2009 financial crisis and the 2014-2015 plunge in prices for oil," Reuters said quoting the ILO and the International Monetary Fund (IMF).

However, this expat exodus isn't restricted to the Middle East. Singapore's total population has fallen for the first time in 17 years, as the economic fallout from the coronavirus pandemic saw less foreigners working in the city state.

The overall population dropped by about 18,000 people, or 0.3%, to 5.69 million, largely due to a reduction in foreign employment in the services sector, according to Singapore's annual population report released this week.

 

Subscribe to International Investment's free, twice-daily, newsletter

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • Expats
  • Middle East
  • GCC
  • Expat
  • UAE
  • Saudi Arabia
  • Oman
  • Qatar
  • Singapore

More on Expats

Expat exodus in Gulf states could continue into 2023: S&P report

  • Expats
  • 18 February 2021
Expats say lifestyle is now a bigger priority: World of Work Survey

  • Expats
  • 12 February 2021
More than 250,000 expats left Saudi Arabia in 3Q2020

  • Expats
  • 25 January 2021
Australian expats warned of tax bills on return post-pandemic

  • Expats
  • 08 January 2021
Asia-Pacific dominates 2021 Henley Passport Index

  • Expats
  • 05 January 2021
Back to Top

Most read

EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
EU removes Barbados from blacklist of 'non-cooperative' jurisdictions
Global UHNWI population to grow by 27% over the next five years: Knight Frank
Global UHNWI population to grow by 27% over the next five years: Knight Frank
J.P. Morgan Asset Management launches Global Income Sustainable Fund
J.P. Morgan Asset Management launches Global Income Sustainable Fund
Comment: Four key issues powering the renewable energy revolution
Comment: Four key issues powering the renewable energy revolution
Amati Global Investors launches strategic metals fund
Amati Global Investors launches strategic metals fund
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading